WASHINGTON, D.C. – In response to the Missouri State House’s passage of HB 2030, the Stock Ownership Tax Deduction Act, ESCA released the following statement from ESCA Executive Director Stephanie Silverman:
“Incentives for boosting employee ownership will deliver growth, jobs, and financial security to many Missourians. The ESOP model is a tried and true approach to ensuring workers share in the success of their companies.
“Missouri has 31,000 business owners over the age of 55. As this group of business owners retires, this bipartisan bill will make turning their employees into owners a more attractive exit strategy.
“We applaud the Missouri State House for seizing a window of opportunity and look forward to Gov. Nixon signing this legislation into law.”
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Additionally, Denny Scott, Chief Financial Officer of Kansas City-based Burns & McDonnell, which is 100 percent employee-owned, said:
“Passing this bill is a win for Missouri workers, businesses, and communities. ESOPs provide financial security for workers, drive productivity for businesses, and keep jobs in our communities.
“At Burns & McDonnell, we’ve witnessed firsthand the power of employee ownership through an ESOP. It’s been central to cultivating an unbeatable culture that makes our company great for our employees and clients.
“We thank Missouri policymakers for coming together and taking concrete action that will strengthen our state’s economy. We look forward to Gov. Nixon signing this bipartisan bill into law so employees across Missouri can share in the success of their companies.”
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Details About HB 2030
HB 2030 allows business owners to defer up to 50 percent of the taxes gained from the sale of stock to an ESOP as long as the company is over 30 percent employee-owned. The bill is similar to ESOP incentive legislation passed in other states, including the state of Iowa. This deduction will incentivize more business owners to sell their companies to their employees through an ESOP, a qualified retirement savings plan. The bill is currently awaiting the Governor’s signature.